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A bankruptcy court has granted SFX Entertainment initial access to $80 million of a loan totalling $115 million. The EDM conglomerate (which owns companies like Disco Donnie Presents, Life in Color and Miami Marketing Group) filed for Chapter 11 bankruptcy last week, and the loan marks the first steps towards a companywide restructuring as laid out in its proposed restructuring agreement.

SFX Entertainment’s stock value fell from $13 per share to less than a dime per share in less than three years following its initial public offering – due in no small part to CEO Robert F.X. Sillerman’s erratic mismanagement of the company’s numerous assets. In the next 60 days Sillerman will resign as CEO to serve as chairman – and as the company moves to fill his position, chief restructuring officer Michael Katzenstein will act as interim CEO.

While about $23 million of the restructuring loan will be allocated to operating expenses, the bulk of the sum will go towards swapping equity for debt financing by using capital borrowed from junior bondholders to pay off senior lenders. Being that as of this writing SFX Entertainment’s stock value has fallen to two cents, whoever assumes control will not have an easy time restoring the corporation to some form of profitability even with the capital injection.

SFX Entertainment is sure to issue additional public statements as the details of their restructuring agreement are fleshed out, so check back with us for more updates.